Notice2023-15020
Superfund Tax on Chemical Substances; Request To Modify List of Taxable Substances; Notice of Filing for Methyl Ethyl Ketoxime
Primary source
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Published
July 17, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This notice of filing announces that a petition has been filed pursuant to Rev. Proc. 2022-26 (2022-29 I.R.B. 90), as modified by Rev. Proc. 2023-20 (2023-15 I.R.B. 636), requesting that methyl ethyl ketoxime be added to the list of taxable substances under section 4672(a) of the Internal Revenue Code (List). This notice of filing also requests comments on the petition. This notice of filing is not a determination that the List is modified.
Full Text
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<title>Federal Register, Volume 88 Issue 135 (Monday, July 17, 2023)</title>
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[Federal Register Volume 88, Number 135 (Monday, July 17, 2023)]
[Notices]
[Pages 45454-45455]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15020]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Superfund Tax on Chemical Substances; Request To Modify List of
Taxable Substances; Notice of Filing for Methyl Ethyl Ketoxime
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of filing and request for comments.
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SUMMARY: This notice of filing announces that a petition has been filed
pursuant to Rev. Proc. 2022-26 (2022-29 I.R.B. 90), as modified by Rev.
Proc. 2023-20 (2023-15 I.R.B. 636), requesting that methyl ethyl
ketoxime be added to the list of taxable substances under section
4672(a) of the Internal Revenue Code (List). This notice of filing also
requests comments on the petition. This notice of filing is not a
determination that the List is modified.
DATES: Written comments and requests for a public hearing must be
received on or before September 15, 2023.
ADDRESSES: Commenters are encouraged to submit public comments or
requests for a public hearing relating to this petition electronically
via the Federal eRulemaking Portal at <a href="http://www.regulations.gov">http://www.regulations.gov</a>
(indicate public docket number IRS-2023-0032 or methyl ethyl ketoxime)
by following the online instructions for submitting comments. Comments
cannot be edited or withdrawn once submitted to the Federal eRulemaking
Portal. Alternatively, comments and requests for a public hearing may
be mailed to: Internal Revenue Service, Attn: CC:PA:LPD:PR (Notice of
Filing for Methyl Ethyl Ketoxime), Room 5203, P.O. Box 7604, Ben
Franklin Station, Washington, DC 20044. All comments received are part
of the public record and subject to public disclosure. All comments
received will be posted without change to <a href="http://www.regulations.gov">www.regulations.gov</a>,
including any personal information provided. You should submit only
information that you wish to make publicly available. If a public
hearing is scheduled, notice of the time and place for the hearing will
be published in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Camille Edwards Bennehoff at (202)
317-6855 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Request To Add Substance to the List
(a) Overview. The petition requesting the addition of methyl ethyl
ketoxime to the List is based on weight and contains the information
detailed in paragraph (b) of this section. The information is provided
for public notice and comment pursuant to section 9 of Rev. Proc. 2022-
26. The publication of petition content in this notice of filing does
not constitute Department of the Treasury or IRS confirmation of the
accuracy of the information published.
(b) Petition Content.
[[Page 45455]]
(1) Substance name: Methyl ethyl ketoxime (MEKO).
(2) Petitioner: AdvanSix Inc., an exporter of methyl ethyl
ketoxime.
(3) Proposed classification numbers:
(i) HTSUS number: 2928.00.10.
(ii) Schedule B number: 2928.00.1000.
(iii) CAS number: 96-29-7.
(4) Petition filing date: July 10, 2023.
(5) Petition filing date for purposes of section 11.02 of Rev.
Proc. 2022-26, as modified by section 3 of Rev. Proc. 2023-20: January
1, 2023.
(6) Description of petition: According to the petition, MEKO is a
clear liquid and a high-efficiency, anti-skinning agent that is used
for air-drying paints, inks, and coatings. The vast majority of the
production of MEKO is by the conventional method developed in the late
1960s, via a route that involves condensation of methyl ethyl ketone
with a hydroxylamine salt in the presence of a base. More specifically,
methyl ethyl ketone is oximated with Raschig hydroxylamine to yield
MEKO. More recently a ``peroxide route'' was developed and thought to
provide a more selective production of MEKO. The peroxide route
involves the liquid-phase ammoximation of methyl ethyl ketone with
H<INF>2</INF>O<INF>2</INF>, and ammonia, over Ti-MWW catalyst. Because
of incumbent systems already in use, this peroxide route method is not
widely adapted.
MEKO is made from ammonia, sulfuric acid, and butylene; however,
sulfuric acid is cancelled from the stoichiometric material consumption
equation due to no net consumption/production. The percent of MEKO
produced with taxable chemicals is 39.97, by weight, of all materials
used in the production of MEKO.
(7) Process identified in petition as predominant method of
production of substance: The conventional method developed in the late
1960s, via a route that involves condensation of methyl ethyl ketone
with a hydroxylamine salt in the presence of a base. More specifically,
methyl ethyl ketone is oximated with Raschig hydroxylamine to yield
MEKO.
(8) Stoichiometric material consumption equation, based on process
identified as predominant method of production:
C<INF>4</INF>H<INF>8</INF> (butylene) + 5 NH<INF>3</INF> (ammonia) + 2
H<INF>2</INF>O (water) + 1.5 O<INF>2</INF> (oxygen) + 2 SO<INF>2</INF>
(sulfur dioxide) [rarr] C<INF>4</INF>H<INF>9</INF>ON (methyl ethyl
ketoxime) + 2 (NH<INF>4</INF>)<INF>2</INF>SO<INF>4</INF> (ammonium
sulfate) + H<INF>2</INF> (hydrogen)
(9) Tax rate calculated by Petitioner, based on Petitioner's
conversion factors for taxable chemicals used in production of
substance:
(i) Tax rate: $11.41 per ton.
(ii) Conversion factors: 0.98 for ammonia; 0.64 for butylene.
(10) Public docket number: IRS-2023-0032.
Michael Beker,
Senior Counsel (Passthroughs and Special Industries), IRS Office of
Chief Counsel.
[FR Doc. 2023-15020 Filed 7-14-23; 8:45 am]
BILLING CODE P
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